Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced product GHG emissions by 76k tCO2eq vs -46k in 2020
• Increased share of battery and corded products to 30% of sales
• Increased share of recycled materials in packaging to 54%
• Slovakian plant moved to 100% renewable electric energy

Social Achievements

• Work-related injury rate dropped by -73% (0.32 in 2021 vs 1.19 in 2020)
• Increased employee count by 21% (1555 vs 1281 in 2020)
• Implemented Roma community inclusion project in Slovakia
• 22k training hours in total including training on Human Rights in 2022

Governance Achievements

• Released a new version of its Code of Ethics in 2021, with a specific focus on environmental issues
• Established a cross-functional ESG governance structure
• No confirmed incidents of corruption and no incidents of non-compliance concerning product and service information and labelling in the last three years

Climate Goals & Targets

Environmental Challenges

• Rising raw material costs making the transition to more sustainable packaging materials difficult
• Supply chain disruptions (implied due to the global context)
• Data security issues related to increasing number of connected products

Mitigation Strategies

• Supply chain optimization project started in 2019
• Medium-term agreements with key suppliers
• Implementation of robust design through New Product Conformity (NPC) process
• Use of Google Cloud for data storage with strong security measures and GDPR compliance

Supply Chain Management

Supplier Audits: Supplier rating on environmental and social aspects to start in 2023

Responsible Procurement

• STIGA’s Code of Ethics provided to most material suppliers
• Medium-term agreements with key suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (2016 and 2018 updated version for OHS)

Certifications: ISO 45001 (Safety) and 14001 (Environment) (target by end of 2022)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Battery-powered products across all categories (target by 2022)
• Interchangeable batteries across product categories
• Connected products with STIGA.GO app

Awards & Recognition

• 2019 Via Bona Slovakia award for Roma community inclusion project

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased the percentage of electric powered products sold to 25% of overall sales (target was 28%, but below target due to unfavorable sales mix).
• Reached 61% recycled material in packaging (target achieved).
• Achieved 6.8% recycled plastic in products (exceeded target of 3%).
• China plant installed solar panels, producing 130,000 kWh in the second half of 2022.
• 8 companies obtained Green Origin Certificates.

Social Achievements

• Developed a common Group standard for flexible work and is being implemented.
• 21,226 training hours completed (including training on Human Rights).
• STIGA production plants obtained ISO 45001 (Safety) and 14001 (Environment) certifications.
• 97% of active material suppliers signed the Code of Ethics.
• China plant awarded Liepin Best Place to Work Award.

Governance Achievements

• Established a cross-functional ESG Committee.
• Completed audits on Warranties and Purchasing processes.
• Zero data breaches.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions.
• Unfavorable sales mix impacting electric product sales.
• High turnover, particularly at production plants.
• Limitations on the use of recycled polymers due to performance and safety standards.
• Energy crisis following the Russia-Ukraine conflict.

Mitigation Strategies

• Secured critical components for production in advance.
• Increased sales prices.
• Investing in initiatives to attract and retain talent (increased training, wellbeing benefits, flexible work policy).
• Testing newly available recycled materials for application in components.
• Implemented measures to reduce energy consumption (reduced heating temperatures, transitioned to LED bulbs).

Supply Chain Management

Supplier Audits: 97% of material suppliers signed the Code of Ethics; collaboration with Sedex starting in 2023.

Responsible Procurement

• STIGA Code of Ethics
• Supplier sustainability assessment effort in collaboration with Sedex

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 45001 (Safety), ISO 14001 (Environment)

Third-party Assurance: PricewaterhouseCoopers Business Services Srl

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric and battery-powered garden tools and machines; autonomous robot mowers.

Awards & Recognition

• Liepin Best Place to Work Award (China plant)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased renewable energy use to 96% across all offices (from 71% in 2022)
• Installed solar panels at the Italian plant, expected to provide 30% of annual electricity consumption starting in 2024
• Increased recycled packaging to 59% (from 61% in 2022)
• Increased recycled plastic in materials to 6.7% (from 6.8% in 2022)

Social Achievements

• 84 internships activated
• 64 employer branding events held
• 19,011 total training hours (14.7 hours per employee)
• Initiated project to seek a gender equality certification for the Italy office

Governance Achievements

• Established a cross-functional ESG Committee
• 87% of top 100 spending suppliers enrolled in Sedex for ESG transparency
• Applied to become a United Nations Global Compact member

Climate Goals & Targets

Environmental Challenges

• Significant uncertainties in the market including economic downturn, global inflation, geopolitical uncertainties, and extreme weather conditions
• High trade stocks due to supply chain disruptions in 2022
• High employee turnover, particularly at production plants
• Data breach (though no data loss)

Mitigation Strategies

• Cost reduction actions
• Organisational structure changes
• Working capital improvements
• Investments in talent attraction and retention (training, wellbeing initiatives)
• Engagement of cybersecurity expert to manage the incident

Supply Chain Management

Supplier Audits: 6 on-site audits in 2023; plans for additional audits and incorporation of Sedex data into internal supplier rating

Responsible Procurement

• Code of Ethics
• Sedex platform for ESG transparency
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers Business Services Srl

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Initiatives such as renewable energy adoption, emissions reduction, and sustainable product development contribute to these goals.

Sustainable Products & Innovation

• Battery and electric-powered products
• Autonomous robot mowers

Awards & Recognition

• AA-level recognition for upholding workers’ rights (China office)
• Wellness Employer–Innovative Mechanism Award (China office)